Page 15 - AfrOil Week 06 2022

AfrOil NEWS IN BRIEF AfrOil

PIPELINES & TRANSPORT
Australian, French, Italian

companies reportedly
tipped for EACOP contracts

Four international companies have been tipped
for contracts within the framework of the $5bn
East Africa Crude Oil Pipeline (EACOP) project,
the Daily Monitor reported on February 7.
The contractors include Australia’s Worley,
the French multinationals Schneider Electric
and Bolloré Logistics and Italy’s ISOF Con-
struzioni SRL. Worley is slated to execute an
engineering, procurement and construction
management (EPCM) contract, while Schnei- 1, to increase total crude production by portfo- a step further towards joining all of Azinam’s
der will carry out an electrical, instrumentation, lio companies by 120% to reach 6,000 barrels per offshore exploration acreage into our broader
telecoms and security (EITS) contract, which day (bpd). portfolio. We are working towards drilling a well
will cover the supply and installation of the pipe- The investment will be channelled via on Block 2B, a highly prospective play in the
line’s security and fibre-optic systems. ISOF has Badreddin Petroleum Co. (BAPETCO), a sub- Orange basin offshore South Africa, close to the
agreed to build a coating plant for the consorti- sidiary of WEPCO, with oil exploration and recent discovery by Shell and QatarEnergy in the
um’s pipelines and fittings in Dar es Salaam, and development operations in Egypt’s Western Orange basin in Namibia. The well is planned for
Bolloré will provide logistics services related the Desert to drill five new wells and complete six the second half of this year. The Company also
delivery of at least 100 km of pipe per month to existing wells. The Egyptian state is keen on anticipates drilling a further exploration well
the coating plant. increasing the rate of oil production and reserves in Guyana following this. Eco (the designated
“These [contractors] have been presented to at BAPETCO, especially since it took over full Operator), along with the Block partners at
local entrepreneurs both in Uganda and Tan- ownership of Badr-1 field. Africa Energy and Panoro, believe that Block 2B,
zania through our local contract workshops,” In connection, the government is accelerat- which already has an established oil discovery,
EACOP managing director Martin Tiffen was ing the implementation of the new expansion possesses considerable upside potential. We also
quoted as saying by the Daily Monitor. plan for the port of El Hamra as one of the most evaluate that Block 3B/4B, with the Block Part-
EACOP is a key component of the $10bn important petroleum ports in Al Alamein region ners at Africa Oil and Ricocure in the Orange
Lake Albert Development Project, which also on the North Coast overlooking the Mediter- Basin, South Africa, is directly correlated to the
comprises the development of multiple oilfields ranean. In addition, it plans to establish ware- Graff-1 well, which was announced on Friday 4
in western Uganda. The upstream component houses at the port over an area of 120 feddans February 2022 by Namcor and block partners as
of the project calls for the establishment of pro- (50 hectares) as well as a petroleum trading zone a light oil discovery in the primary and second-
duction and processing infrastructure at Tilenga, for petroleum products over an area of 420 fed- ary targets. We look forward to firming up our
operated by the French major TotalEnergies, and dans (175 ha). exciting drilling plans and updating our share-
Kingfisher, operated by China National Offshore bna/IntelliNews, February 9 2022 holders on the funding structure and timing of
Oil Corp. (CNOOC). the wells in due course.”
EACOP, which will follow a 1,443-km route Eco (Atlantic) Oil & Gas in Eco (Atlantic) Oil & Gas, February 8 2022
from Hoima in Uganda to the port of Tanga in
Tanzania, is set to be the world’s longest heated definitive share purchase ReconAfrica increases
oil pipeline. Construction is due to start in 2023
and will take two years to complete. The link will agreement with Azinam participating interest in
have a throughput capacity of 216,000 barrels per
day (bpd). Further to the announcement on January 10, Kavango basin
bna/IntelliNews, February 7 2022 2022, Eco (Atlantic) Oil & Gas, the oil and gas
exploration company focused on the offshore Reconnaissance Energy Africa (ReconAfrica)
Atlantic Margins, confirms that it has signed a has entered into a Letter of Intent (LoI) with
INVESTMENT definitive Share Purchase Agreement (SPA) to its partner, National Petroleum Co. of Namibia
acquire 100% of Azinam Group in return for a (NAMCOR) to acquire half of NAMCOR’s 10%
WEPCO plans to invest 16.5% equity stake in the Company. carried participating interest in the approximate
The Acquisition is expected to complete in 6.3mn acres petroleum exploration licence (PEL
$28mn in FY 2022/2023 two to three weeks pending TSX-V approval, 73) in the Kavango basin, in north-east Namibia.
Consideration for the 5% carried interest shall
at which time a further announcement will be
to increase crude output made. comprise (a) 5mn common shares in the capi-
Gil Holzman, Co-Founder and CEO of Eco tal of ReconAfrica (the Consideration Shares)
Egypt’s state-owned Western Desert Operating Atlantic, commented: “We are very pleased to having an aggregate value of CAD31.75mn
Petroleum Co. (WEPCO) plans to invest $28mn have signed the final definitive SPA to acquire with a deemed price per ReconAfrica Share of
in Fiscal Year 2022/2023, which starts next July Azinam Group. This now puts the Company CAD6.35, and (b) $2mn in cash.

Week 06 09•February•2022 www. NEWSBASE .com P15